Tuesday, May 29, 2007

Capital Formation

US regulations continue to push companies away from our public markets:

Fourteen of the world's 15 biggest IPOs this year were listed outside of the U.S. Non-U.S. issuers have been wary of listing in New York because of stricter financial-reporting requirements, imposed by the 2002 Sarbanes-Oxley Act, and the U.S. dollar's 30 percent drop in the past five years.

U.S. bankers aren't making it any easier. They have held the average fee steady at about 6.7 percent of the amount of the IPO since 2002, while European bankers charge about 3.2 percent, Bloomberg data show.

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Ideas cannot be fought except bymeans of better ideas. The battleconsists not of opposing, but ofexposing; not of denouncing but of disproving; not of evading,but of boldly proclaiming a full,consistent and radical alternative.
-- Ayn Rand